Financial Services Commission Presidential Briefing on the 30th
[Asia Economy Reporter Minji Lee] Financial authorities plan to revise laws and practices unfavorable to investors to create a capital market environment that meets global standards next year and to enable shareholder-friendly corporate decisions.
On the 30th, the Financial Services Commission announced this plan during the presidential briefing held at the Blue House State Guest House in Jongno-gu, Seoul. The FSC stated, “We will enhance the attractiveness of the capital market by creating an investment environment that aligns with global standards,” and added, “We will establish a shareholder-friendly dividend system by strengthening the roles of shareholders and institutional investors.”
The FSC plans to first improve convenience for foreign investors by abolishing the registration obligation for foreign investors and the obligation to report investment details, as well as expanding the scope of post-reporting for over-the-counter transactions. The English disclosure system for listed companies will also be gradually mandated. By next year, this will apply to KOSPI-listed companies with assets exceeding 10 trillion won, and by 2026, to those with assets over 2 trillion won. Additionally, the FSC will continue to hold briefings and investor relations (IR) sessions targeting MSCI (Morgan Stanley Capital International) and overseas investors to strengthen communication.
The FSC intends to enhance the transparency of management in listed companies by strengthening the roles of shareholders and institutional investors. Specifically, to enable shareholder-friendly dividend decisions, it plans to designate shareholders eligible for dividends after determining the dividend amount and revise related legal regulations. Furthermore, it will strengthen disclosure requirements regarding the purposes of treasury stock acquisition and disposal, and impose stricter sanctions, including increased fines, for violations of the large shareholding reporting obligation (5%).
The capital market investment base will be expanded to improve the fundraising environment. To revive the public offering fund market, which has weakened in competitiveness due to individual stock investments, the FSC plans to rationalize fee and compensation systems and prepare comprehensive measures to increase returns.
Moreover, as individual bond investments are increasing, the FSC plans to include corporate bonds and unlisted stocks within the K-OTC market in the ISA tax-exempt product category and provide tax benefits for investments in high-yield (BBB+ and below) funds.
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